Who gets your property after you die in Pennsylvania?  There are two main ways that will determine how a person’s assets are distributed after they die:

1. A will (or trust), signed by the individual before they die which will name an executor and list the people who will inherit there property and in what amounts.
2. Through Pennsylvania intestacy laws. Each state has enacted an intestate succession law to address this issue. These laws are essentially a default estate plan for people who don’t create their own. If there is no Will, these laws will determine how all of the deceased’s probate property will be distributed. Here is a link to Pennsylvania’s Intestacy statute for reference.

To answer the question “who will get a person’s stuff after they die?” We have to first determine if that person had a will, and then determine which family members survived them.

The Pennsylvania Estates and Fiduciaries Code (the statute that governs estates) can be very complicated when it comes to determining who will inherit what after an individual dies.  Reviewing the facts with an estate administration lawyer near Harrisburg, PA will help determine the heirs so that the administrator can properly distribute the assets.

How long probate takes depends on the size and complexity of the estate, but generally an estate should take somewhere between 12 and 18 months from start to finish.  It is not uncommon for an estate to take as long as two years.  Selling real estate or dealing with a small business can take quite a long time.

The Pennsylvania Department of Revenue can take up to six months to process the inheritance tax return which can add to the delay in closing the estate.  Final debts and expenses can usually be paid quickly as long as there is some cash available, and beneficiaries can be given partial distributions so they do not have to wait the full 12 to 18 months to receive their inheritance.

In order for an estate to be opened, the executor needs to present the original will at the Register of Wills office in the county where the person died, and they must be sworn in as executor.  As mentioned above, there are situations where an estate may not need to be opened.  Additionally, there are times where the executor, or the person who has possession of the wills does not want to open the estate and therefore delays or avoids all together, presenting the will for probate.

If a beneficiary or creditor believes someone to have the will but is avoiding probate, they can petition the Register of Wills to compel that individual to produce the will for probate.

Probate can be a long and aggravating process.  Finding a way to transfer your assets to your family without going through probate can save everyone a great deal of time and money.  There are several different ways to avoid probate in Pennsylvania, including gifting, joint property, naming beneficiaries, and creating a trust.

• Gifting – One of the simplest ways to avoid probate is to gift assets before you die.  Of course, gifting assets means you will no longer own them and may not have access.  This is the simplest option but may not always be the most practical.
• Joint Property – Property that is owned jointly with one or more individuals will automatically pass to the other owners when one owner passes away.  This can be a convenient option for spouses or other family members to pass bank accounts or real estate while avoiding probate.
• Naming Beneficiaries – Accounts that allow for a beneficiary to be named are the easiest way to avoid probate.  Life Insurance, IRAs, 401ks are all accounts that should have named beneficiaries.  It is essential that beneficiaries be kept up to date (i.e. death, divorce).  A trust can also be named as a beneficiary if there are young children as beneficiaries of your estate.
• Creating a Trust – A trust is a legal entity that you can create to hold property as part of your estate plan.  Trusts can be revocable or irrevocable.  Most often, for estate planning, an individual will set up a revocable trust and act as their own trustee until they are no longer able to (death or disability).  Then the successor trustee will take over managing the trust for you or your beneficiaries.  For more information on how trusts work, check out our blogs on how living trusts work.

The probate process can be lengthy and complicated, so it can be difficult to know what happens after probate is closed.  The goal of probate is to make sure that all final debts and expenses are paid, all inheritance and estate taxes are paid, and the beneficiaries receive their inheritance.  Once all of the expenses, debts and taxes have been paid, the executor must provide the beneficiaries with a final accounting, which shows all of the assets and their values as wells the estates debts and expenses that were paid.  Most often the executor provides an “informal accounting” which does not need to be filed with the court.

If the beneficiaries accept the accounting as provided (find out more here about what happens if the beneficiaries won’t accept the informal accounting), the executor must have all beneficiaries sign releases and the distribute the final proceeds.  Once the proceeds have been distributed, the estate must file a final status report with the County Register of Wills informing them that the estate has been concluded.

The value of an estate does not determine whether or not you need to probate the estate.  The types of assets are what determine if an estate needs to be opened.  If a person dies with assets in their name (not joint assets and no named beneficiaries), the only way to transfer those assets is to probate the estate and become named as executor or administrator of the estate.

There are certain fees that an estate must pay such as the probate fee to the county advertising costs, and potential attorney’s fees.  There may also be debts and expenses that must be paid when the estate is opened.  If the assets are not valuable (small bank accounts, old cars, etc.) the asset may not even be enough to cover the expenses.  You should consult with a probate attorney and review the assets before opening an estate.  There are a few options for transferring some small assets without opening an estate. Read more about avoiding probate costs.

How long probate takes depends on the size and complexity of the estate, but generally an estate should take somewhere between 12 and 18 months from start to finish.  It is not uncommon for an estate to take as long as two years.  Selling real estate or dealing with a small business can take quite a long time.

The Pennsylvania Department of Revenue can take up to six months to process the inheritance tax return which can add to the delay in closing the estate.  Final debts and expenses can usually be paid quickly as long as there is some cash available, and beneficiaries can be given partial distributions so they do not have to wait the full 12 to 18 months to receive their inheritance.

Pennsylvania state law requires that all of a person’s final debts be paid out of their estate as part of the probate process.  This is not as simple as it sounds.  A person’s probate estate is responsible for paying their final debts but assets that pass outside of the probate estate are not subject to those debts.  If the probate estate does not have enough money to pay the debts, then the creditors should be notified that the estate is insolvent, and they will not receive payment.

If the estate has some money but not enough money to pay all the final debts and expenses, there is a specific order in which creditors should be paid.  If an executor pays the wrong creditors or does not make the correct pro rata payments, they can be held personally responsible by the creditors.  It is essential that you consult with an attorney before making payments of final expenses.